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Iran Open to Working with British, American Firms

Iran welcomes collaboration of Iranian firms with BP and American companies for investment in Iran's oil and gas industry, said Iran's deputy oil minister for trade and international affairs said Wednesday.

According to Anadolu News Agency, Amir Hossein Zamani-Nia said at a media conference on the sidelines of the World Petroleum Congress in Istanbul, "Iran and BP have a long and lasting historical relationship and we would invite not only BP but also American companies [to Iran]."

He added, "We would welcome them to come and forge a partnership with Iranian companies. We think the situation is normal enough now for major international oil business to engage in Iran."

The country's oil and gas production was hindered due to sanctions in the past few years, but aims to revive its oil and gas sectors following sanctions relief after the nuclear deal between Iran and P5 +1 signed in July 2015.

Speaking at the same press conference, CEO of BP Bob Dudley said the company has "six or seven upcoming major projects" for next year.

"There are lots of good opportunities around the world," Dudley said, noting that energy giant Total made "a very significant investment" in Iran.

Iran signed a new contract at the beginning of July to develop Phase 11 of the world's largest gas field development project in South Pars with French company, Total and China National Petroleum Corporation and Iranian company Petropars.

According to Dudley, in terms of supply and demand, the industry would see a reduction of inventory toward the end of the year.

"I think the market is actually balanced today. It has more to do with the inventorial level, but I am not speaking as an OPEC member," he added.

The BP head said that the company would spend US$15 billion in projects this year, and in 2018 and 2019.

"We have got our plate full for a while now, and we have some other plans. We just have to stay on our capital diet right now," he added.

He said that if prices continue to drop further, energy companies would have to adopt the new price environment. Energy companies need to have 'flexibility' and be 'very disciplined' in a period of low oil prices, he concluded. - Iran Daily